TELECOMs
Taiwan Mobile profits rise
Taiwan Mobile Co (台灣大哥大), the nation’s second-largest telecom, yesterday said it made NT$1.26 billion (US$37.7 million) in net profits last month, helped by the growing number of subscribers to its 4G services. That translated into earnings per share of NT$0.46, meaning that the company is on its way to hit its full-year earnings forecast of NT$14.01 billion, or NT$5.15 per share, this year. Last month’s net profits rose 4.13 percent from NT$1.21 billion the previous year. However, last month’s revenues fell 5.48 percent to NT$10.2 billion from NT$10.58 billion the previous year.
RESTAURANTS
Gourmet Master sales rise
Gourmet Master Co Ltd (美食達人), which operates the bakery chain 85°C (85度C), yesterday reported that sales last month rose 15 percent annually to NT$1.85 billion. Sales from its China-based outlets last month rose 10 percent year-on-year, amounting for 67 percent of total revenue during the period, the company said. Wowprime Corp (王品), the nation’s largest restaurant chain operator, said sales last month rose 2.55 percent annually to NT$1.42 billion. Tai Tong Food & Beverage Group (瓦城泰統集團), which operates five restaurant chains, including three Thai cuisine brands, said sales last month rose 25.23 percent annually to NT$314 million.
TECHNOLOGY
R&D spending up 5.6%
The nation’s spending on research and development (R&D) totaled NT$483.5 billion in 2014, 5.6 percent higher than the year before, the Ministry of Economic Affairs said yesterday. Spending on R&D amounted to 3 percent of GDP, up 0.2 percentage points from 2010, according to the ministry. The business sector was the largest contributor to R&D, the NT$373.3 billion it put into R&D accounting for 77.2 percent of all R&D spending in the nation in 2014, or 5.6 percentage points higher than in 2010, the ministry said. In the private sector, electronics component makers and developers were the biggest spenders on R&D, investing NT$181.5 billion in R&D in 2014, up from NT$131.3 billion in 2010. Makers of computers, electronics and optical products were the next biggest spenders, accounting for 24.1 percent of all investment in R&D in the private sector in 2014. Taiwan’s R&D expenditure is still lower than Japan’s 3.58 percent and South Korea’s 4.29 percent.
TRADE
Italy tax deal finalized
The Ministry of Foreign Affairs yesterday said that Taiwan and Italy have finalized an agreement to avoid double taxation and tax evasion. The ministry said the agreement was wrapped up on Dec. 31 last year and took effect on Jan. 1. Italy became the 14th European nation to complete a double taxation avoidance agreement with Taiwan. Italy is Taiwan’s fifth-largest trading partner in Europe, behind Germany, the Netherlands, the UK and France. Bilateral trade between Taiwan and Italy totaled about US$4.13 billion in 2014. The ministry said about 60 Taiwanese companies have investments in Italy and the agreement would help improve their operations and increase their willingness to invest. Taiwan has signed tax agreements with 29 nations, the ministry said. Taiwan’s tax agreements with Japan and Canada are expected to go into effect by Jan. 1, next year once legal procedures related to the agreements are completed, the ministry said.
Nvidia Corp CEO Jensen Huang (黃仁勳) today announced that his company has selected "Beitou Shilin" in Taipei for its new Taiwan office, called Nvidia Constellation, putting an end to months of speculation. Industry sources have said that the tech giant has been eyeing the Beitou Shilin Science Park as the site of its new overseas headquarters, and speculated that the new headquarters would be built on two plots of land designated as "T17" and "T18," which span 3.89 hectares in the park. "I think it's time for us to reveal one of the largest products we've ever built," Huang said near the
China yesterday announced anti-dumping duties as high as 74.9 percent on imports of polyoxymethylene (POM) copolymers, a type of engineering plastic, from Taiwan, the US, the EU and Japan. The Chinese Ministry of Commerce’s findings conclude a probe launched in May last year, shortly after the US sharply increased tariffs on Chinese electric vehicles, computer chips and other imports. POM copolymers can partially replace metals such as copper and zinc, and have various applications, including in auto parts, electronics and medical equipment, the Chinese ministry has said. In January, it said initial investigations had determined that dumping was taking place, and implemented preliminary
Intel Corp yesterday reinforced its determination to strengthen its partnerships with Taiwan’s ecosystem partners including original-electronic-manufacturing (OEM) companies such as Hon Hai Precision Industry Co (鴻海精密) and chipmaker United Microelectronics Corp (UMC, 聯電). “Tonight marks a new beginning. We renew our new partnership with Taiwan ecosystem,” Intel new chief executive officer Tan Lip-bu (陳立武) said at a dinner with representatives from the company’s local partners, celebrating the 40th anniversary of the US chip giant’s presence in Taiwan. Tan took the reins at Intel six weeks ago aiming to reform the chipmaker and revive its past glory. This is the first time Tan
CUSTOMERS’ BURDEN: TSMC already has operations in the US and is a foundry, so any tariff increase would mostly affect US customers, not the company, the minister said Taiwanese manufacturers are “not afraid” of US tariffs, but are concerned about being affected more heavily than regional economic competitors Japan and South Korea, Minister of Economic Affairs J.W. Kuo (郭智輝) said. “Taiwan has many advantages that other countries do not have, the most notable of which is its semiconductor ecosystem,” Kuo said. The US “must rely on Taiwan” to boost its microchip manufacturing capacities, Kuo said in an interview ahead of his one-year anniversary in office tomorrow. Taiwan has submitted a position paper under Section 232 of the US Trade Expansion Act to explain the “complementary relationship” between Taiwan and the US
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